Europe Lashes Out Over Trump's New Auto Tariffs With 'Cost Growth' Warning

European automakers decried the U.S. import tax on cars as a heavy burden that will punish consumers and companies alike on both sides of the Atlantic.

FRANKFURT, Germany (AP) — European automakers, already struggling with tepid economic growth at home and rising competition from China, on Thursday decried the U.S. import tax on cars as a heavy burden that will punish consumers and companies alike on both sides of the Atlantic.

The new 25% import tax announced by President Donald Trump on Wednesday “will hurt global automakers and US manufacturing at the same time,” the European Automobile Manufacturers’ association said in a statement.

The head of Germany’s auto industry association, VDA, said the tariffs would weigh on car makers and every company in the deeply interwoven global supply chain “with negative consequences above all for consumers, including in North America.”

“The consequences will cost growth and prosperity on all sides,” Hildegard Müller said in a statement. The stakes are enormous for BMW, Volkswagen, Mercedes-Benz, Volvo, Stellantis and their vast network of suppliers, as well as the entire European economy.

The U.S. is the biggest export destination for the European auto industry and in 2023, European automakers exported 56 billion euros worth of vehicles and parts to the U.S.. Europe’s auto industry supports 13.8 million jobs, or 6.1% of total EU employment.